Microsoft Ordered To Adopt AMD Chip For Its Next-Gen Xbox Console

Microsoft adopted AMD’s ‘Jaguar’ processor for its next generation Xbox game console as the company wishes to keep the overall cost of the console as low as possible and get developers to make more titles. Game publishers did complain that the current generation consoles which used different architecture came with a very steep learning curve, therefore shooting up their development costs.

AMD is benefitting from this chip, who also has its presence on Sony’s PlayStation 4, therefore in total the company a very large share of global video game market worth $67 Billion. This will also help AMD to rely less on PC industry.AMD’s Chief Executive Officer Rory Read aims to have more than 20% revenue from areas other than PC by Q4 2013.

Since AMD is making these chips, there’s lesser burden on Game develops as it uses the common architecture, both companies as their overall costs are decreased and AMD as they’re getting a very large size of the processing market for consoles practically on a silver plate.

The total retail sales for Video Games in U.S. fell down to 21% which amounts to $8.9 Billion whereas games downloading to PCs and mobile devices increased to 16% of $5.9 Billion.

Currently, Microsoft made plans to unveil its next-gen console at the E3 Expo or maybe a separate event during May or June. According to The Verge, Microsoft is planning to unveil this console by May 21st. As of now, no specification has been released. Richard Doherty, President of Technology Consulting Firm ‘Envisioneering Group’ said,“We’ll probably see many more titles because the console makers are saying the publishers are back in the driver’s seat. Smoke, shading and reflections for each machine and can essentially create once and port once, and be done.”

Source: Bloomberg